The Australian supply and demand curves for the coffee bean is as follow:

Supply:QS= 750 + 50P

Demand:QD= 2000 - 75P

Where P is the price in AUD per kilogram and Q is the quantity in millions of tons. The supply sources of coffee beans include products from Australian owner farms, which have a capacity of 800 million tons and import the rest from abroad.

Part 1.Answer the following questions:

1. What is the market-clearing price of coffee beans in Australia? Express your calculation.
2. How much coffee beans Australia market need to import?.
3. Calculate consumer surplus and producer surplus.
4. Illustrate clearly the answers of question 1, 2 and 3 in a graph.

Part 2.After a series of catastrophic events, including prolonged drought in northern Queensland, coffee is grown predominantly. The Australian Farmer Association indicated that market-clearing price is not conducive to domestic production. In an attempt to protect domestic producers, the Australian Government decides to tighten imports by establishing import quotas, which equals to half of the current import level. Answer the following questions:

1. What is the new market-clearing price and the market-clearing quantity of coffee beans in Australia? Explain your calculation in detail.
2. How much is the net benefit that domestic farms can gain from this policy of the Government? Explain your calculation in detail.
3. How much is the cost to the Government in imposing this policy? Explain your calculation in detail.
4. Illustrate clearly the answers of question 5, 6, 7 and 8 in a graph.